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CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

Learning Materials for Unit 1 of the Certification in Humanitarian Supply Chain Management (CHSCM).

Learning Materials for Unit 1 of the Certification in Humanitarian Supply Chain Management (CHSCM).

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We have looked at <strong>the</strong>se barriers under a number of different head<strong>in</strong>gs, but <strong>the</strong>re are also clear<br />

l<strong>in</strong>ks between some of <strong>the</strong> different barriers. For example:<br />

• Power and self-<strong>in</strong>terest can affect <strong>the</strong> level of trust<br />

• Different goals and objectives can affect self-<strong>in</strong>terest<br />

• Culture and values can affect trust and communication<br />

• Trust can affect <strong>the</strong> amount of communication tak<strong>in</strong>g place<br />

We might assume that, where different functions with<strong>in</strong> an organization need to work toge<strong>the</strong>r to<br />

manage <strong>the</strong> supply cha<strong>in</strong>, <strong>the</strong>re will be no barriers. We would be wrong to make this assumption.<br />

There are a number of barriers, which <strong>in</strong>clude:<br />

• Organization structure<br />

• Different objectives and key performance <strong>in</strong>dicators (KPIs)<br />

• Culture<br />

Most organizations, particularly <strong>the</strong> larger humanitarian organizations, are structured <strong>in</strong>to different<br />

divisions, functions, departments, and sections. This is a traditional way to structure and manage<br />

any organization. These different parts of an organization were usually set up because <strong>the</strong>y needed<br />

to be operated as a specialist part of <strong>the</strong> organization, or because <strong>the</strong> organization was of such a<br />

size that it needed to be managed <strong>in</strong> smaller functions or sections. Historically, it is common for<br />

people to have a job and career with<strong>in</strong> a specialist part of <strong>the</strong> organization and for <strong>the</strong>m to seldom<br />

venture very far outside <strong>the</strong>ir part of <strong>the</strong> organization and work with o<strong>the</strong>rs <strong>in</strong> o<strong>the</strong>r parts.<br />

This structur<strong>in</strong>g of an organization is often referred to as silos. The problem is that it is not normal<br />

practice for <strong>the</strong>se different functions to work closely toge<strong>the</strong>r.<br />

Organizations are often structured <strong>in</strong>to different levels. There will be functions where <strong>the</strong>re are<br />

roles and people work<strong>in</strong>g at head office level, regional level, country level, and local level. This<br />

structure can be a barrier to people work<strong>in</strong>g toge<strong>the</strong>r, as <strong>the</strong> actions of people at one level can be<br />

seen to be <strong>in</strong>appropriate by people work<strong>in</strong>g at a different level. An example of this could be a<br />

decision made by someone at a head office level to stipulate <strong>the</strong> type, make, and specification of<br />

vehicles any regional or country fleet must conta<strong>in</strong>. This would make sense from an organization<br />

po<strong>in</strong>t of view, as it standardizes <strong>the</strong> specifications of vehicles throughout <strong>the</strong> organization and can<br />

reduce <strong>the</strong> cost of purchas<strong>in</strong>g <strong>the</strong> vehicles. But from some regional and country level perspectives,<br />

<strong>the</strong> decision and <strong>the</strong> specifications are not seen as appropriate for certa<strong>in</strong> regions and countries.<br />

Where <strong>the</strong> organization structure is a significant barrier to functions work<strong>in</strong>g toge<strong>the</strong>r, it may be<br />

necessary to change <strong>the</strong> structure. This can <strong>in</strong>volve chang<strong>in</strong>g <strong>the</strong> structure of <strong>the</strong> logistics/supply<br />

cha<strong>in</strong> function or <strong>in</strong>troduc<strong>in</strong>g cross-functional teams to manage parts of <strong>the</strong> supply cha<strong>in</strong> process.<br />

Where supply cha<strong>in</strong> activities are carried out by different functions with<strong>in</strong> <strong>the</strong> organization, it may be

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